To really blossom in the house flipping game, you need to know the different avenues that are at your disposal.
Flipping houses is an incredibly popular field in the real estate community. With the right ambition and knowledge, the average person can be very successful in the house flipping game. However, if you fail to educate yourself on the different approaches to this business, you might not really thrive.
But isnâ€™t house flipping a pretty cut-and-dry business with essentially one approach?
The answer is no. House flipping is a living ecosystem of many different people and pieces, all moving together to make a sale happen. What you need to do is diversify your mindset and find your particular place, or places, in this field.
The 7 Ways To Get Involved In The House Flipping Game
What many beginners do not realize is that there are many different ways make money in this exciting business. Some strategies donâ€™t involve renovating or even buying at all! Below are some of the different approaches to the house flipping game.
1. Standard Fix And Flip
A fix and flip is the most basic and most commonly used tactic. This process entails three steps: buying a property, renovating it, and selling it at a higher price. While this is a simple approach, it is the most tried and tested and can often bring a substantial profit.
2. Lease Option
In a lease option, the first two steps are the same as the fix and flip. You will buy a property and fix it up. However, the third step is where the two strategies differ. In a lease option, instead of selling the property outright, you will rent it out to a tenant. The tenant will pay upfront for an â€œoptionâ€. This option gives the tenant the choice to buy the property once the lease is up. If they do not choose to buy it however, you can always find another buyer to sell the property to, just as you would in a standard fix and flip.
The lease option is a great strategy to use when you are waiting to the housing market to become less competitive. If you buy the house in an aggressive market, you can lease it out and still make money. Then when the market dies down, you can sell it for a greater profit than you would have if you sold it immediately.
For up and comers in the house flipping game, a great strategy to get strategy to get your toe in the door is wholesaling. Wholesaling is similar to...